The global postal industry increased revenues by 2.1% last year, which is slightly higher than the 2016 growth rate, as e-commerce growth outweighs the mail decline, new figures from International Post Corporation (IPC) showed today.
In comparison, global postal industry revenues increased by 2.0% in 2016 and by 2.4% in 2015, according to the international postal association.
The stronger growth proves that actions to offset mail volume declines and diversification efforts are paying off, IPC said. Increasing parcels and express B2C volumes – both domestically and cross-border – supported revenue growth for many posts last year, it noted.
Holger Winklbauer, CEO of IPC, explained: “The postal industry revenue continues to grow in a very competitive market, while facing continued e-substitution that drives traditional mail decline. Despite fierce competition in the parcels market, many posts reported growth in B2C volumes, as more and more consumers are buying online. As continued e-commerce growth has driven parcels volume, posts have also looked to boost network capacity and flexibility to meet the changing needs of modern customers, while at the same time implementing initiatives to streamline and modernise their networks to make mail delivery more efficient.”
While mail volumes continued to decline for most posts, these declines were in part offset for some postal operators by increases in advertising mail volume growth, growth in lightweight e-commerce items, and one-off events such as national elections.
Winklbauer continued: “In 2017, posts continued to diversify and innovate in order to respond to customers’ expectations. While some posts are expanding their parcel locker networks, some are trialling innovative delivery solutions to offer consumers more choice and control. As cross-border e-commerce continues to grow, IPC is working together with its member postal operators to implement a modular suite of in-cart solutions to offer e-retailers and their customers a fully integrated service platform, to capitalize on this growth potential, while at the same time also continuing their efforts on maximising efficiency and quality in the international mail segment.”
IPC will publish complete 2017 results as well as results for the first half of 2018 in its Global Postal Industry Report in November 2018. The report will include a comprehensive and detailed review of the postal industry, covering 50 postal operators worldwide and analysing key market trends. A publicly available summary, the IPC GPIR Key Findings, will also be published in November.
